The very people that you rely upon including partners, employees, suppliers, subcontractors, and customers can be the source of different types of disputes. While your business may not insulate itself from all liability, it can minimize the possibility of disputes. Instituting policies and procedures that govern the day to day activities of your business including transactions with other business and interaction with employees can greatly reduce the chances of dispute emerging.
Common Types of Business Disputes
Disagreements between partners can disrupt the daily operations of any business, and in some cases can cause business failure. One of the major causes for partnership disputes is financial obligations. These can arise when a business experiences cash flow problem. To resolve this type of business dispute, you will need assistance from an experienced attorney who can explore all legal issues in your case and determine the best cause of action.
In most cases, employee disputes arise due to unfair termination, salary expectations, disapproved maternity or sick leave, and discrimination. Such disputes can involve government agencies and intricate local and state employment laws. This means that you will need immediate assistance from an employment dispute attorney. Most of the times, employees don’t know the long-term consequences of going to trial, but when the company’s attorney meets with the employee’s attorney, it can help to identify alternative methods to resolve the dispute.
Breach of Contract Disputes
A breach of contract often involves monetary compensation. Contracts or agreements include language that carefully outlines the party responsible for the performance of various duties. When the terms of the contract are violated, it may warrant a litigation to seek compensation for losses or a monetary reimbursement.
Business to business disputes can cover different professional relationships. In case a business suffers financially, or its reputation gets tarnished because of the non-performance of a supplier, such a situation may lead to litigation. Such disputes can be more complicated, especially if there’s no written agreement.
How to Prevent Business Dispute
Your business should have policies on the hiring and firing of employees. An experienced business dispute Colorado attorney will help your business draft these policies and ensure that they are consistent with the latest employment laws. In case of a dispute, you can rely on a small claims court to resolve any outstanding debts, bills or employment issues.
Ways to Resolve Business Dispute
There are ADR (Alternative Dispute Resolution) clauses in business contracts that stipulate that any disputes that arise due to the contract should be resolved through arbitration or mediation before filing a lawsuit. Arbitration is the process of resolving a dispute that involves two parties outside the court. However, arbitration is like trial because both parties must argue their case to the arbitrator who listens and decides the best solution. On the other hand, mediation is a negotiation between multiple parties that is facilitated by a mediator who is a neutral third party. Unlike arbitration, the mediator doesn’t decide for the disputing individuals; instead, they try to help both parties to come to a resolution on their own.